AI in ERP Is a No-Brainer!

The eBook recently published by Strategic Systems Group (SSG) is an FAQ resource. It provides in-depth answers to “12 Frequently Asked Questions about Enterprise Resource Planning Systems” for manufacturers. In Chapter 12, we explore Artificial Intelligence (AI), its role in and its impact on ERP systems in general, and specifically in manufacturing.

AI in ERP Is a No-Brainer!

Executives are demanding better and timelier information to conduct analyses and make decisions. While businesses are generating and capturing exponentially more data from an increasing number of sources, that doesn’t necessarily make it easier for humans to make decisions. This is both a challenge and an opportunity for AI.

AI – affectionately anthropomorphized and called “AL” – not only has the capacity to conduct repetitive tasks at a fraction of the time that would be required by a human, AI can also analyze enormous quantities of data at lightning speed. Knowing how and where in your ERP system to apply AI may be a challenge, but the upside outweighs the downside by a long shot.

The question is not why you would incorporate AI into your ERP software, the question is why not.

There are many different opportunities to leverage AI within your ERP software and your manufacturing processes.

How and Where

AI can be applied to supply chain, inventory control, production, and ordering processes. For example, today, buyers and planners are responsible for keeping inventory at optimal levels. Today, materials management tasks such as Sales forecasting, Master Production Scheduling (MPS), and Materials Requirements Planning (MRP) are handled by a human. At some time in the not so distant future, these roles will be replaced by intelligent systems that can keep track of inventory values, determine when inventory will be depleted, and order replacement parts. These parts will arrive just in time to be pulled from their location by a robot or automated conveyor system for the next production order. The next evolution of this paradigm shift is when one organization’s AI communicates with other organization’s AIs to keep their respective supply chains running smoothly.

Natural Language Processing

Many of us already use intelligent assistants like Siri, Alexa, or Cortana to gain access to artificial intelligence platforms. We can verbally ask for information, have an intelligent agent retrieve it and give it back to us verbally or visually. For example, someone on the shop floor can verbally request the drawings for the part he or she is working on at the time. In the future, these agents will become even more powerful. So fasten your seatbelts. It’s going to be an interesting journey.

Microsoft is certainly moving in this direction. Cortana Analytics integration is one of the newest features offered in its ERP solutions. We expect this to continue to evolve as new, more powerful computing becomes available and new versions of ERP and manufacturing software are released.

Download a complimentary copyof our eBook now to learn more about AI in ERP and manufacturing scenarios.